The Bank of Canada just 'stomped' on the housing market rebound

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Higher interest rates could put downward pressure on home prices and send some would\u002Dbe buyers back to the sidelines, experts say. Read on.

its key interest rate 25 basis points to 4.75 per cent on June 7 will put downward pressure on home prices, which have rebounded faster than the bank had expected,Calgary Herald Headline NewsEmail AddressBy clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc.

House prices had started to firm up again in April, when sales increased by 11.3 per cent — the largest monthly rise since 2009. Benchmark home prices in Toronto increased 3.2 per cent in May to $1.14 million on a seasonally adjusted basis, the biggest increase since the market peaked in February 2022, according to the Toronto Regional Real Estate Board.

Meanwhile in Vancouver, the Real Estate Board of Greater Vancouver said May home sales rose 15.7 per cent from a year earlier, while prices increased for the sixth consecutive month, showing signs of heating up heading into the summer.

 

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